Staff Report
ISLAMABAD: The Hub Power Company Limited (HUBCO), as a joint venture partner and Pakistani sponsor of China Power Hub Generation Company Limited (CPHGC), has provided $150 million security in the form of a Standby Letter of Credit in favour of CPHGC, expiring today 23 November.
The CPHGC has served an encashment notice to the issuing bank. Earlier, the company entered into an SBLC facility agreement with various banks on 23 October 2017 to facilitate the issuance of SBLC, valid earlier than (i) four years from the facility effective date or (ii) the achievement of the Project Completion Date.
According to the company’s website, HUBCO is Pakistan’s first and largest Independent Power Producer (IPP), with a joint installed power generation capacity of 3,250 MW. HUBCO aims to provide Pakistan with affordable and uninterrupted energy.
